May 13, 2003

Englefield Capital closes first fund at €700 million and announces the formation of its Advisory Board

Englefield Capital, the independent private equity firm targeting the European middle market, has announced today that it has closed its first fund, The Englefield Fund, with commitments of €700 million and has named its Advisory Board.

The fund has been raised in conjunction with and is sponsored by Bregal, a subsidiary of Cofra Holding AG, the Swiss-based holding company of the Brenninkmeijer family. Additional institutional investors include AXA Private Equity, the Dutch Shell Pension Fund and Delta Lloyd. In addition, Englefield Capital has created a unique Affiliates Fund which has secured commitments from approximately 150 individuals, most of whom are business leaders in the UK, Western Europe and the United States.

Separately, in a move to complement its investment strategy, Englefield has established an Advisory Board that will meet periodically to review macro worldwide trends and forces at work that will affect the overall investment environment, and more specifically, the sectors the Partners have identified as attractive.

Together with the Founding Partners of Englefield, Louis Brenninkmeijer and Yves de Balmann of Bregal, the Advisory Board comprises:

• Professor Tim Congdon, CBE, Director and Chief Economist at Lombard Street Research Ltd, and a frequent contributor to the financial press, known as 'The best forecaster among Chancellor Ken Clarke's seven wise men...' Sunday Business 1998.
• Prof. Dr Ronald Frohne, Senior Partner and spokesman of the leading independent law practice in Germany, Norr Stiefenhofer Lutz. He is one of the outstanding media and corporate lawyers in Germany and practises throughout the world on behalf of his international clients.
• Sir David Frost, the world-renowned broadcaster and businessman, has been in the front line of television news and entertainment for over 40 years. Famous for his landmark interviews, among the many world figures he has interviewed are the six most recent Prime Ministers of the UK and six most recent Presidents of the USA.
• Ed McKinley, a Senior Partner at Warburg Pincus for 19 years until January this year who continues as a Senior Advisor to that Firm.
• Edwin Kunkels, private equity manager of the Stichting Shell Pensioenfonds (Dutch Shell Pension Fund), a long standing investor in the private equity arena.
• Paul Myners, CBE, retired in 2001 after 17 years as Chairman of Gartmore Investment Management. His current directorships include Chairman, Guardian Media Group, non-executive director of Marks & Spencer and mmO2. In 2001 he completed a review of Institutional Investment for HM Treasury and is a member of the Financial Reporting Council. He was appointed non-executive director to the Board of the Bank of New York in 2002.
• Lord Robertson of Port Ellen, George took up his current post as Secretary General of NATO in 1999 after serving as Secretary of State for Defence from 1997 to 1999. He will formally join this board on his handing over of his current position at the end of the year.
• Sir John Rose, Chief Executive, Rolls Royce, received his knighthood in the 2003 New Years Honours List. He joined Rolls Royce in 1984 and became Chief Executive at just 43 in May 1996. He is a fellow of the Royal Aeronautical Society and a Council Member of the Prince's Trust.

Dominic Shorthouse, Senior Partner, commented: "We are delighted that such an august group has agreed to serve on our Advisory Board. Whilst they do not have any fiduciary responsibility, they will provide key strategic insights to our investment philosophies and guide us in determining which sectors and countries are likely to benefit from favourable 'following winds'."

Etienne de Villiers, Senior Partner, added: "The international experience these individuals bring, together with the access to key decision makers and policy formers are unique. Their networks, experience and access will perfectly complement our hands-on strategy in bringing our portfolio companies to their full potential."

Englefield's Affiliates Fund comprises around 150 individual investors, 80% of whom are chairmen, founders, chief executives or partners of their business and more than 60% have worked directly with at least one of the partners of Englefield. For example, the Affiliates include individuals from almost all of the deals spearheaded by Dominic Shorthouse. Other investors include Justin Dowley, Harvey Goldsmith, CBE, Michael Green, Lord Clive Hollick, Chris Ingram, Christopher Sharples and Dermot Smurfit.

Dominic Shorthouse commented: "Our strategy is to stay small, and to focus on attractive sectors where we have identified strong management teams that will benefit from favourable fundamental trends in the sector in which they operate. The composition, seniority and experience of the Affiliates Fund will simply make us a lot better in finding proprietary deals and guide us in our due diligence."

Etienne de Villiers added: "We believe that growth businesses in the middle market benefit from having active operational input from investors who have been there before. Our Affiliates Fund gives us unparalleled access to knowledge and experience in a multitude of industry sectors. These are CEOs and founders that have done it all."

Englefield Capital was formed in 2002 by Dominic Shorthouse, Etienne de Villiers, Eric Walters, Adam Barron and Edmund Lazarus. It typically focuses on €20-75 million equity investments in companies with an enterprise value of less than €400 million. Although not sector specific, Englefield will invest in sectors where the experience and expertise of its partners and its Affiliates allow it comprehensively to understand the commercial and financial issues that affect its investee companies.

In addition, it will focus on situations where the changing European investment environment creates strongly supportive macroeconomic or sectoral forces. Current areas of focus include renewable energy, insurance, retail financial services and business services, particularly outsourcing and recruitment. The United Kingdom is expected to be the single largest country of investment but a substantial proportion of the fund will also be invested in continental Europe.

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